The City Of Klamath Falls v. Bell

7 Or.App. 330, 490 P.2d 515 (1971)

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Nature of the Case

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Facts

A corporation conveyed land to the city of Klamath Falls (P), to be used for a public library. The deed granted the land '...for and as a gift and without any consideration...so long as it complies with the conditions hereinafter set forth...' The deed further provided that, if the city ceased to use the property for a library, title to the land would pass to the principals of the corporation, Schallock, and Daggett, or their heirs and assigns. Shortly after making the conveyance, the corporation dissolved. P built a library on the land, which operated for over forty years. At that time, the books were moved to the county library building. The city library building remained vacant up until the time of suit. After it closed the library, P filed a declaratory judgment action, joining the heirs of Schallock and Daggett (D) as parties, requesting a determination as to who owned the land. The court found that the deed passed a fee simple determinable, or a fee simple on a special limitation, to P. Further, it noted that the deed attempted to create a gift over of an executory interest to Schallock and Daggett, and found that the gift over was void, since it violated the Rule Against Perpetuities